25 May 2023

Gelion plc

("Gelion" or the "Company")

Strategic progress update on the Johnson Matthey IP acquisition

for the LiS/LiSiS technologies

IP acquisition positions Gelion as a significant player in the lithium-sulfur market,

providing a strong foundation for becoming a global leader in this sector

Gelion (AIM: GELN), the Anglo-Australian battery innovator, is pleased to provide an update on the strategic evaluation of the Lithium Sulfur ("LiS") and Silicon Anode ("Si") patent portfolios (the "IP") acquired from Johnson Matthey in March 2023.

Through the combination of the newly acquired LiS IP and Gelion's own IP, Gelion has the potential to significantly advance its efforts to revolutionise the energy storage industry by developing sustainable, high-performance LiS batteries with superior energy density (e.g. potential to double EV ranges), high safety and great cost-effectiveness, providing a compelling alternative to current lithium-based battery technologies.

Key highlights post-acquisition

·    Gelion has evaluated the 450 patents across 82 patent families acquired and concluded it is in the Group's best interest to retain the majority of the IP portfolios, strengthening Gelion's future development in the LiS battery market and potentially offering additional commercialisation opportunities, in the areas of lithium battery recycling and salt-based electrode technologies.

·    Signed agreement to sell the subset of patents relating to Silicon Anode IP (73 patents across 17 patent families), which are non-core to the Company's particular activities, to Sicona Technologies Pty Ltd ("Sicona"), a silicon anode technology developer in Australia for US$1.5 million (£1.20 million). Gelion will retain the exclusive license (royalty-free) to the Silicon Anode IP, when used in combination with lithium silicon sulfur (LiSiS) or other LiS battery chemistries. 

·    Acquisition is assisting in the acceleration of internal R&D and is expected to significantly enhance the Company's future partnership prospects.

Commenting on the update, John Wood, CEO said: "It is promising to see that the acquisition of this highly valuable IP portfolio from Johnson Matthey is already bearing fruit in just a few months, providing us with the opportunity to accelerate the development and consequently commercialisation of our own Sulfur cathode platform technology at a faster rate. It is an exciting step forward within the Lithium-based energy storage industry and provides a foundation for Gelion to become a global leader within the sector."

Background on the IP portfolio

The IP portfolio acquired includes over 450 patents across 82 patent families and includes development programs, technology transfer packages, market and portfolio analyses, manufacturing design and cost models for sulfur-based energy storage technologies.

The overall portfolio also includes IP relating to applications of solid-state electrolytes, liquid electrolytes, next-generation cathode materials, processing and manufacture of lithium metal anodes, protective lithium anode coatings, battery management systems, and battery recycling. Gelion is assessing how to best utilise these IP elements to progress its strategic and commercial goals, develop strong relationships and form important partnerships that will assist in the rapid development and commercialisation of our lithium-sulfur battery technology.

The IP portfolio is extensive and covers many key areas that, individually and as a group, not only help to provide strong protection against relevant manufacture by competitors in key markets in Asia, North America and Europe, but also provide protection against commercialisation activities in these markets, placing Gelion in a strong competitive IP position with respect to other lithium-sulfur developers.

Gelion's unique approach is focused on the development of advanced Sulfur cathode platform solutions that can be paired with a variety of Lithium anode technologies (i.e. silicon, graphite, lithium metal). As these latest generations of Lithium anode technologies become more developed, tested and commercially available, Gelion's technology will be well placed to provide exciting Sulfur cathode pairing solutions.

This approach maximises Gelion's capability to provide the dovetailed solutions required to partner with eventually the most dominating next generations of lithium anode technologies.

The agreement to sell the subset of patents to Sicona  is expected to be completed (with no condition's precedent) and funds transferred by June 2023.

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About Gelion plc

Gelion ("gel: ion") is a global renewable-energy storage innovator who supports the transition to a sustainable economy while delivering value for its customers and investors by designing and manufacturing the outstanding zinc-bromide batteries for stationary energy storage and additives for mobile battery applications.

Performance Additives - Tomorrow's transport systems will rely on mobile renewable energy.  Gelion is developing performance additives and cathode solution based on nanotechnology with the aim of improving the safety, longevity and energy density of lithium-based batteries for mobile applications. Gelion's IP will help power the EV and e-aviation markets.

Stationary storage - Gelion Zinc Bromide battery: the sustainable energy storage solution.

Gelion has developed patented technology for a breakthrough zinc-bromide battery to support the transition to a carbon neutral economy by 2050. The technology is being developed with the goal of establishing Gelion Zinc Bromide as a logical participant in the ecosystem of suppliers, manufacturers and customers surrounding lead acid technology. 

Gelion's zinc-bromide gel battery uses non-flow technology, which is scalable, can deliver 100% depth of discharge and has potential for higher temperature tolerance and much faster discharge rates, while utilizing all nameplate capacity, representing significant advantages over lead-acid battery technology.

Gelion was spun-out from the University of Sydney in 2015 by Professor Thomas Maschmeyer, Fellow of the Australian Academy of Science and recipient of the Australian Prime Minister's Prize for Innovation 2020, that country's highest honour for scientific entrepreneurship.

The Company's ESG credentials are strongly aligned to six of the UN's 17 Sustainable Development Goals.

Gelion's shares are listed on the AIM market of the London Stock Exchange and it received the Green Economy Mark at IPO in November 2021, recognising its commitment to energy transition.